Shortly after the announcement of the transfer of power to the new Iraqi government, France announced It would normalize business relationship with Iraq.
Complete economic ties with the new government will be restored immediately following the exchange of power.
The new directive, which cancels the 1990 degree suspending all trade with Iraq, will take effect immediately and will restore transactions between France and Iraq without the required French government approval.
Oil prices fell as traders speculated that the transfer of power will reduce the orchestrated attacks on Iraq’s oil production industry.
The decline in oil prices signals a hopeful sign that the world oil supplies may be increased due to the future increase in oil production in Iraq.
Although unlikely to dissipate the insurgants, the transfer of power to the Iraqi people may reduce the willingness of some of the population in Iraq to support the opposition groups.
“Have confidence and faith and you will succeed,” Blair said in an interview on Iraqiya television on Tuesday, a day after the transfer of power to the interim government of Iraq.
Blair insisted that the coalition had transferred complete sovereignty to new interim Iraqi government. NATO has pledged to assist Iraq in training its security forces, both inside and outside or Iraq. “The best guarantee of security for Iraq is Iraqi forces and we can help in that.”
“Of course I would like visit Iraq and I would like the people in Iraq to know that they have got a friend in my country,” he said, although he did not know when such a visit might take place.
The U.S.-led coalition transferred sovereignty to an interim Iraqi government on Monday, accelerating the move in an attempt to prevent sabotage by insurgents who oppose the rule of the new Iraqi government.
The new interim government was sworn in six hours after the handover ceremony.
With their right hand on the Quran, members of interim Prime Minister Iyad Allawi’s Cabinet vowed to execute their new duties with sincerity and impartiality. A bank of Iraqi flags lined the podium behind them.
“Before us is a challenge and a burden and we ask God almighty to give us the patience and guide us to take this country whose people deserves all goodness,” said President Ghazi al-Yawer. “May God protect Iraq and its citizens.”
Sovereignty documents were transferred earlier by outgoing U.S. administrator L. Paul Bremer to Allawi in a ceremony attended by about a half dozen Iraqi and coalition officials in the heavily guarded Green Zone. “This is a historical day,” Allawi said. “We feel we are capable of controlling the security situation.”
Bremer leaves Iraq
Bremer left Iraq two hours after the ceremony. Bremer was accompanied by coalition spokesman Dan Senor and members of his staff. The interim government will have full sovereignty, yet it will operate under major restrictions, some imposed at the behest of the influential Shiite clergy, which whis to limit the powers this administration.
The Iraqis can in principle ask the foreign troops to leave — although it is unlikely this will happen.
The United States and its coalition partners are hoping that the transfer of power will serve as a boost for Iraqis, who have resisted foreign military occupation. Now that the country has returned to Iraqi control, U.S. officials hope Iraqis will quell the insurgency and work to restore internal stability.
In March, the Coalition Provisional Authority published the Central Bank of Iraq Law, which is far more than a law — it’s a primer on central banking.
Subject to those objectives, the CBI shall also promote sustainable growth, employment, and prosperity in Iraq.
The new law provides for an independent central bank whose objectives are to achieve and maintain domestic price stability, foster and maintain a market-based financial system and promote sustainable growth, employment and prosperity.
The CBI is required to maintain its independence from the Government of Iraq and, except for the provisions set out in the law, will not take instructions from any other persons or entity, including government entities.
The new CBI law has been reviewed by the Iraqi Governing Council, acting on the recommendation of its Economic and Finance Committee.
The law has also been reviewed by the International Monetary Fund and calls upon the CPA to promote economic reconstruction and the conditions for sustainable development in Iraq.
“Since the new, post-Saddam Iraqi Dinar is a public currency that is backed up by the government of Iraq, it is valid as currency throughout the world.”
“There are no prohibitions against purchasing this currency or against reselling it, so long as you are in accord with the local laws wherever you may be.” Quoted in a memorandam by Mr. Pearse Marschner, Coordinator, Regional Arabic Media for the Coalition Provisional Authority.
